Mining with CEX.IO or why do I not believe skeptics

[kickbit]

I was interested in the question why do people buy GHS on CEX.IO for such a high price.

And the answer was quite clear:

• They can be sold at any time, at least in theory.
• While owned, GHS make profit in the form of Bitcoins.

But the network difficulty is constantly growing, which means GHS make less profit, while the electricity and maintenance cost percentage should increase as well.

Everyone I know keeps telling me that a long term investment in GHS is plain silly, you can only get some profit on short trades.

At first I agreed with all of these arguments, as I’ve never had any experience with an Exchange, but one day, something possessed me to buy 6.5 BTC worth of GHS.

And here is what came out of it:
At first I decided to try to play on short rate fluctuations: I bought a small portion of GHS and put them for sale for a price a little bit higher than I bought, and etc.

A couple times I even managed to make some profit.
Here is a screenshot of my trading history:





At first, there were no signs of trouble.
But as you can see, I made all the transactions on the 25-26th of November, at the time when the prices were at the all-time high.
A couple of hours after my purchase the price for 1 gigahash began to crumble.





My first thought was: “Oh s%^$t! I will never use another exchange in my life!"

The price for 1 Bitcoin at that time was about $900 per BTC and it swiftly moved to $1000.

You can imagine, I spent $6000 on something unclear and I watched my investments depreciate rapidly.

If you look at the Bitcoin charts you can tell that the timing for my investment couldn’t be worse.

But eventually I was able to calm myself and just stared at the charts.

I also kept myself busy making a calculator, which allows users to predict the exact maximum profitability of a GHS, calculate profitability per day, per month, taking into account network difficulty increase and other various factors.

I put it on the net: http://mining-profit.com/

So, using my super awesome calculator I have counted that my 79 GHS’ profitability is 0.0553 BTC per day. And if I wait for two weeks, I will get about 0.7742 BTC in income. This means that if after two weeks the price for 1 GHS will be equal to 0.072 BTC, then I can sell my GHS and break even. If I decide to hold on to my GHS for 1 month - I can sell them for 0.65 and break even. Hence, all I need to do is sell GHS for a price higher than the ROI price and get profit while I’m mining.

Considering the fact that I was afraid to lose somewhere around 1.5 BTC, which is roughly 23% of my investment, the prospect of me breaking even gave me a warm satisfying feeling.

I decided to keep trading and mining to make some profit out of this situation!

I decided to wait until the prices rise again, but they were fluctuating up and down, so eventually  I was tired of waiting and sold them all, when I understood that am no longer at loss, but even made small profit.

My trading resulted into a profit of 0.26 BTC, which was equal to $250 at the exchange rate at that time on bitstamp, or nearly 5% of the investment.

Here's a screenshot of my recent trades:





6.73 BTC it is not a huge amount, as many would expect, but it is a decent reward for a beginner like me, I also gained great experience.

And considering that initially I could barely hope for a minor loss of my investment, at the end of trading - I made profit, which is very nice.

So coming out of my personal experience I can say that even people without any experience or perfect understanding of how the bitcoin mining/trading works I’ve managed to make profit from the CEX.IO exchange.

PS. If you enjoyed my story, and you want to try out mining and trading yourself - be sure to sign up with CEX.IO with my referral link: https://cex.io/r/0/kickbit/0/. It'd be greatly appreciated.

 

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[DrG]

Prior to the dot com bubble anybody could have thrown darts at a WSJ paper and hit a winning stock.  BTCe Trollbox should indicate there is minimal skill and mostly luck in trading cryptos.

Consider yourself lucky.  For every winner in CEX there are 2 loosers.

[kickbit]

You know, I don't think I'm lucky.
The main idea of my article was - I'm NOT lucky 

However, I didn't lost any BTC and even made some profit with cex.

[DrG]

You know, I don't think I'm lucky.
The main idea of my article was - I'm NOT lucky 

However, I didn't lost any BTC and even made some profit with cex.

Well if it is not luck, then it is skill.  It has to be one or the other.  Inherently the only people who can make money from CEX are those who bought when it was dirt cheap.  With the next dif bump it should be well under 0.04 in price to be market priced compared to straight hardware.

Again I can fault people for having fun.  If you're having fun like thinking it's a trading game good for you.  If your sole goal is to make money then buying BTC or making a BTC business makes more sense.  Even mining doesn't makes sense without cheap power and cheap miners.

[Dexter770221]

You posted your referral link 3 times. It's obvious that you just want people to mine for you, just becuse you wrote some short story of your adventure...

[philipma1957]

To the op you have completely missed the best  points of cex.io


  You need to own at least .00000001 ghs to have an account.  So go to cex.io open a small account for .1gh  or about .007 btc or about 5-6 dollars usd.

  guess what this allows you to do  it allows you to use your in house miners on their mining site.


https://www.ghash.io/   this is a private site and you can not be on the site unless you own some hash


at cex.io

 https://www.cex.io/   this is a direct link no referral …

disclosure  the referral link  for me is in my signature.And right now I have 3 referrals hashing I get about 2.2gh free hash from the ones that joined with my referral

trading is flat out gambling  and while you made money at it there is a shitload of risk.   BUT mining on the private site is great.

 why ?  here is why:
1) they are huge what does that do?  it lowers 'bad' luck.  or variance .  
2) low fees
3)  you earn BTC NMC IXC + DVC
4)  you can convert your NMC to BTC for 0 that is correct 0 fees.

So let us say you buy .1gh from cex.io  the cost is .0068999btc     about 6 or 7 usd.  now you are in the 'club'  you fire up your in home gear.

let us say 2 am cubes or 60gh  the 60 gh earns you .033 btc a day and about .044 nmc a day.   along with some IXC and some DVC.   so every day buy about .5gh using your earning.

 in 6 days you have about 3gh added to your hashing. convert to btc and cash it out. or let it grow.

 after 6 days you no longer have 60 + .1= 60.1gh of hash you have 60 + 3.1 or 63.1 gh of hash.  if you let it build up your risk is higher  but you returns would be higher.


edit if you cash out every 6 days or so you earn better then any other mining pool . and lower risk of busting out if cex.io folds.
 remember any mining pool can fold and steal your btc they are holding for you.

  these ideas are true and real no bs.   if anyone has a large amount of hash power  in house they should consider what I am typing.  while I do completely

agree with the op the cex.io is 'good'  

my reasons are safer and more certain then his are.  

BTC mining has risk due to pricing that no pool or club and fully make it safe for you  on any day you can wake up and see btc drop 90%

but cex.io  allows you to use https://www.ghash.io/  with your in home mining gear and that is really good.

[kickbit]

You posted your referral link 3 times. It's obvious that you just want people to mine for you, just becuse you wrote some short story of your adventure...

Okay, I removed them. It doesn't matter. This article is not about referral links.

[Macno]

I found your story intersting, as I also think about investing there. If I hadn`t already made an account, I would have klicked your referral link, just because I think it is ok to reward information.

[Colin Miner]

Okay, I removed them. It doesn't matter. This article is not about referral links.

Don't be bullied by those that are jealous of your post. Keep your referral links, maybe say they are referral links, but you do deserve to keep them for your interesting post.

Thank you for taking the time to write it, I enjoyed reading it.


(I am already doing what philipma1957 suggests with ghash.io, but also trade for fun on cex.io, otherwise I would have used your referral link)

[TechByPC]

Agreed. People claiming that it is easier to make a loss are jealous of your ability to make a profit while they can't. I appreciate your story as well as it mirrors some of my early experiences with it, although with much less capital. Don't let people bully you about referral links either. That mentality is more like: "I wish people would click mine instead of yours."

I'm running a parallel experiment with 4 block erupters all measured at the same speed running on 4 different pools. One of them is cex.io/ghash.io, and even with the recent small reduction in the price of GHS, it is still in 2nd place. Before someone jumps in and tries to point out that luck is more likely the reason it is in 2nd place instead of 4th, believe me I am aware of that possibility. I am not drawing any conclusions until this has been running for at least a month except to point out that cex.io is not a money sink and there are people making profit there all the time. Even ones who aren't making on the backs of people who make emotional trades rather than calculated ones.

[klondike_bar]

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

you are investing in a mine operation rather than a single GH. CEX.io sucks for mining, only profits anyone can/will make is from buy low/sell high, not the actual mining income

[dopey]

Great breakdown thanks for this. I wonder if they will allow the mining of additional alt currencies too in the near future?

[zauker]

you can convert your NMC to BTC for 0 that is correct 0 fees.

@philipma1957 I'm a cex.io customer. How can I do that, please?

[iPaulito]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

[gigacoiner]

Which mine is this?  The one offering 1GH per share at 60% of CEX.io?

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

[Ultimist]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

But in real life $10K would buy you a heck of a lot more than 10 GHS.

[Morblias]

Which mine is this?  The one offering 1GH per share at 60% of CEX.io?

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

The bitfury mine. It's over 500TH right now.

Buy shares here for 0.0395 BTC per GH: https://picostocks.com/stocks/view/19

This is the forum post of the mine: https://bitcointalk.org/index.php?topic=140366.0

[iPaulito]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

But in real life $10K would buy you a heck of a lot more than 10 GHS.

Now I see the problem, Currently you can buy 600 GHs from butterfly labs for $4680 and you have to pay electricity cost. Same 600 GHs will cost around $8500 through cex.io - not a great deal, but I can imagine when next batch of asic miners will be shipped and GHS/BTC will fall that for few months this could be profitable

[Macno]

The thread history does not sound all that reassuring about picostocks:

https://bitcointalk.org/index.php?topic=133147.0;all

I`m no techie and I`m not greedy, I`d just like to mine a little bit, just for the fun of it and maybe a small ROI, but this seems almost impossible right now.
Cex.io is at least well done, I understand everything and they do not seem to have lost investor money so far?

[fattypig]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

But in real life $10K would buy you a heck of a lot more than 10 GHS.

Now I see the problem, Currently you can buy 600 GHs from butterfly labs for $4680 and you have to pay electricity cost. Same 600 GHs will cost around $8500 through cex.io - not a great deal, but I can imagine when next batch of asic miners will be shipped and GHS/BTC will fall that for few months this could be profitable

You still have to pay electricity buying hash from cex.io. It is already priced in

[Macno]

I just startet with a few satoshis to get a feeling.

I bought this:

2013-12-21 18:23:15    0.00299372 GHS   0.00591770 GHS   BUY   Bought 0.00299372 GHS at 0.06839982 BTC
2013-12-21 18:23:15    0.00292398 GHS   0.00292398 GHS   BUY   Bought 0.00292398 GHS at 0.06839981 BTC

And now my balance is minus 1 satoshi?

2013-12-21 19:02:40   -1e-8 BTC   -0.00000001 BTC   MINING   Block #276256, /Share: 0.000000000862, Fee: 0.00000001

Was the fee higher than my reward due to my small investment?
 

[Timetwister]

CEX.io ghash/s are still very overvalued. If price stays so high is because there are still enough suckers buying, but in the end value and price always match, and those holding ghash/s at that time will lose a lot. It only makes sense to invest at current prices if difficulty increases very slowly the following months and no one else offers ghash/s at lower prices.

[Macno]

@Timetwister:
Where can you buy GHash cheaper and comparably safe and easily tradable? I`m not talking about ASIC miners being delivered (or not), but cloud mining like cex.io?

[Frozenace]

Renting a suitable environment to put your rig has also been priced in, I hope... if I could, I would host a majority of my mining power in the cloud, but I've already have some physical miners that need maintenance.

[Colin Miner]

/Share: 0.000000000862, Fee: 0.00000001

The earnings look much lower than the fee, this is probably why your earnings are a minus,

Add some more hashing power to break out of that cycle or point some mining power at their private pool to boost your share.

[kickbit]

You still have to pay electricity buying hash from cex.io. It is already priced in

Yes, but they have pretty low prices

[kuverty]

Your post is quite contradictory, you're saying you don't believe those who say it's not profitable to hold and you must trade the Gh/s in order to make a profit and yet you are doing just that. Next time you buy Gh/s, just hold them and wait until you break even. I would not say holding for two weeks or a month is very long term.

[high110]

Holding GHS long term is not part of this game.  You end up losing big.  It's very hard to ever break even holding the GHS on cex.io.

[Macno]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

[joele]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

You will end up losing as well, big time.
The only way to make profit with cex.io is by trading, buy low and sell high.

[Macno]

Only if difficulty keeps climbing at this pace, right? That`s something I don`t quite get in general...it`s a pity that simply buying bitcoins is so much more profitable than investing in the infrastructure. I also like having a (small) btc cashflow and supporting the network, it really sucks that you loose big time if you do that instead of simply hoarding the coins.

[high110]

Only if difficulty keeps climbing at this pace, right? That`s something I don`t quite get in general...it`s a pity that simply buying bitcoins is so much more profitable than investing in the infrastructure. I also like having a (small) btc cashflow and supporting the network, it really sucks that you loose big time if you do that instead of simply hoarding the coins.

It's b/c Cex.io allows increase in liquidity so that it becomes more valuable. Being able to sell the GHS at any moment, gives it the higher value.  Hence, if you're in it for the long term, it makes more sense to do a group buy from a trusted person or just outright buy a miner from one of the big names (I would avoid BFL).   

I tend to buy right after a difficulty change from Cex.io, hold  and sell about .5 or .7 times through to next difficulty change.  Seems to be a working formula.  I might keep some BTC for buying low and selling high if the opportunity presents itself...but this requires time and effort (day trading).  Not all of us have the time while holding a day job.

[kuverty]

And what if you keep reinvesting the payouts inluding those altcoins (nmx, ixc and dvc)?

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

[Macno]

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

Yes, sorry, I "calculated" in BTC terms as I consider NMC etc do be worthless "addons"...and the reinvestments in GHash let the cash flow grow and the price drop might be overcompensated...some wishful thinking...

By the way: when you sell GHash, who gets the rewards from the mining jobs they already started but that haven`t been finished yet? When you buy GHash, you only get the "new" rewards, don`t you? I guess cex.io get`s this difference?

[aceking]

the only way you can make a profit at cex is by trading.

[msc_de]

In long term man has to sell ghs out otherwise there must be a big loss, three months for bitcoin mining industry is long term. Trading, mining and meanwhile well prepared to escape 

[kuverty]

How would pouring more money into it help to break even? You would be just investing your profit in addition to the original money, why would it be easier to break even with that? So no, it does not help.

Yes, sorry, I "calculated" in BTC terms as I consider NMC etc do be worthless "addons"...and the reinvestments in GHash let the cash flow grow and the price drop might be overcompensated...some wishful thinking...

By the way: when you sell GHash, who gets the rewards from the mining jobs they already started but that haven`t been finished yet? When you buy GHash, you only get the "new" rewards, don`t you? I guess cex.io get`s this difference?

I see getting paid every time the Ghash.io pool finds a block, so the rewards go to whomever that's holding the Gh/s when a block is found. So if you sell the mining power, you won't get anything for the time after the last block found by the Ghash pool. But blocks are found so often that it isn't really significant.

[bitpop]

It's like a pyramid scheme. Only reason you're making money is by conning someone else. This is fraud. Last person holding your worthless ghs loses. Hot potato anyone?

[MWNinja]

The payout is PPLNS so you will continue to see a diminishing payout on GH/s that were sold for approx 12 hours. Ghash.io is a damn good pool, I love the shareholder feature for managing group-buy hardware payouts. I bought some GH/s initially but since sold them when the price was right. Still have a few GH/s from referral and acquired from trading NMC. Really the price of a GH should be around .04btc right now, so it is expensive ~ but people are willing to pay a premium for not having a houseful of loud hot miners.

[msc_de]

Since 1T TO3T MINER ON THE WAY AVAILABLE, THE CEX PRICE MUST BE DOWN.

TONIGHT IS 0.062BTC LOW

[Timetwister]

@Timetwister:
Where can you buy GHash cheaper and comparably safe and easily tradable? I`m not talking about ASIC miners being delivered (or not), but cloud mining like cex.io?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

[kickbit]

@Timetwister:
Where can you buy GHash cheaper and comparably safe and easily tradable? I`m not talking about ASIC miners being delivered (or not), but cloud mining like cex.io?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

Did you read the article?
I just bought some ghashes, sold them, got some profit. That's simple.

And btw I did the same few days ago. I bought 100 Ghashes. And prices are going down again. I hope I wouldn't lose any btc this time
And of course, any exchange is a game. You can loose or win.

[Macno]

Hi Kickbit, on your calculator site you reference "* GHs sell price - is the lowest price for which you can sell GHS and cover your losses." but I can`t find it on the page?

[Timetwister]

@Timetwister:
Where can you buy GHash cheaper and comparably safe and easily tradable? I`m not talking about ASIC miners being delivered (or not), but cloud mining like cex.io?

I don't care if you can or not buy them for less, but actual Cex.io prices are too high. Those buying are basically betting that difficulty will increase at less than 20% per month (or planning to sell to bigger suckers).

Did you read the article?
I just bought some ghashes, sold them, got some profit. That's simple.

And btw I did the same few days ago. I bought 100 Ghashes. And prices are going down again. I hope I wouldn't lose any btc this time
And of course, any exchange is a game. You can loose or win.

You have won because another sucker paid even more, eventually someone will hold this overvalued shares and lose.

[bigb159]

Go to Cex. Open the trollbox and do everything they tell you to do.

[kickbit]

Hi Kickbit, on your calculator site you reference "* GHs sell price - is the lowest price for which you can sell GHS and cover your losses." but I can`t find it on the page?

Yeah, I'm working on user interface... It's not perfect yet.

You can find it if you click on any month row:

[kuverty]

It's like a pyramid scheme. Only reason you're making money is by conning someone else. This is fraud. Last person holding your worthless ghs loses. Hot potato anyone?

No secret that the price will keep going down, nothing fraudulent there.

[coin123123]

kickbit there is mistake in app title it should be:
"Estimate your bitcoin mining loss"

[kickbit]

kickbit there is mistake in app title it should be:
"Estimate your bitcoin mining loss"

I don't think someone who wants to lose something will use calculator.

[kuverty]

0.052 BTC/Gh, would like to see how the proud holders are doing now

[TechByPC]

As of 201312252035 (Eastern US)

BTC Guild: 0.00183451
Eligius: 0.00179885
EclipseMC: 0.00167789
Ghash.IO: 0.00168542 (0.03009683 GHS * 0.056)

Not a proud holder, just doing an experiment over time. Each pool has a single block erupter that has been running since the 14th. I'm reinvesting all proceeds from ghash.io directly into GHS with the instant buy function, so no fancy trading. As with any less liquid commodity, I wouldn't recommend getting yourself into a situation where you have to sell it at a low in order to make a payment on something. At the very least, it is holding its own with the other pools - it has been up and down.

[xTachibana]

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

you are investing in a mine operation rather than a single GH. CEX.io sucks for mining, only profits anyone can/will make is from buy low/sell high, not the actual mining income

what is this 100th mine that offers 1ghash for .03 btc each ?

[phiche]

I mined with cex for a couple of weeks and enjoyed trading hashpower and earning bitcoins rather than just having them sit in my wallet.

The problem that I had with them though is that there was no indication of how or when CEX added to the supply of hashpower. I asked them and they said they only do it when the difficulty increased, but basically it was totally opaque. There is no way that I could tell what was the total supply of hashpower in the market or how it was changing.

Despite that, I traded for a while. I thought I basically had the market figured out. With the difficult changing at known intervals I though it would be relatively simple to sell just before the difficulty changed (supposedly the high) and buy just after the change (supposedly the low). But during the last adjustment the market didn't act like that, which gave me the heebie-jeebies so I sold everything (at around 0.072 BTC/GHS) and I'm super glad I did because it crashed hard the last few days.

The motto of the story is: a market is a market. If you plan to trade in it then you're doing it to make money and you need to invest time to learn it and do it properly. Basically I don't have the time, so I'm not willing to take the risk any longer. It was a good learning experience though.

[coin123123]

The motto of the story is: a market is a market. If you plan to trade in it then you're doing it to make money and you need to invest time to learn it and do it properly. Basically I don't have the time, so I'm not willing to take the risk any longer. It was a good learning experience though.

Market is a market when all possibilities are open, unlike cex, where 'goods' have very short expiry date which leaves no option but price going down, and you can't short this 'market' so this is a loose loose situation unless others fall to this misrepresentation.

[Macno]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

[bitpop]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

The point is to enrich themselves and scam you.

[Macno]

Ok, but what do they add? Do they "IPO" new GigaHash and sell them on the exchange?

[bitpop]

Ok, but what do they add? Do they "IPO" new GigaHash and sell them on the exchange?

Bitfury chips supposedly

[phiche]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

Cex has 2 types of mining: the mining which you as an individual bring to the pool (like any other pool), and the hosted mining they offer for people to trade in BTC and NMC. The two do not mix. Cex themselves supply all of the hosting for the hashpower that gets traded on their market, i.e. Cex is in total control of the supply of hashpower in the market - they are supposed to act as "market makers".

The way that Cex does it is they add more hashing hardware in their hosting facilities and then they sell it onto the market at the market rate (which means that Cex earns the bitcoins for these trades) and the price is, of course, set by supply and demand. If Cex did not increase the supply of GHS in the market, you would actually see a rise in the cost per GHS because of more miners coming to the pool with greater amounts of bitcoin fighting over the same amount of supply (yes, this would happen despite the return on holding GHS decreasing as the difficulty increases).

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

[bigb159]

I don`t get the point with the added hashpower. What do they add and how does it affect your - say - 1 GigaHash?

Cex has 2 types of mining: the mining which you as an individual bring to the pool (like any other pool), and the hosted mining they offer for people to trade in BTC and NMC. The two do not mix. Cex themselves supply all of the hosting for the hashpower that gets traded on their market, i.e. Cex is in total control of the supply of hashpower in the market - they are supposed to act as "market makers".

The way that Cex does it is they add more hashing hardware in their hosting facilities and then they sell it onto the market at the market rate (which means that Cex earns the bitcoins for these trades) and the price is, of course, set by supply and demand. If Cex did not increase the supply of GHS in the market, you would actually see a rise in the cost per GHS because of more miners coming to the pool with greater amounts of bitcoin fighting over the same amount of supply (yes, this would happen despite the return on holding GHS decreasing as the difficulty increases).

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

+1 Best explanation I've heard so far.

[bitpop]

Looks like the scam is collapsing

[Xian01]

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price.

 I just don't trust them. Period

 Was "fun" mining there for a while, but felt like I was mining for a crime syndicate or cartel for some-odd reason

 Not to mention I had genuine issues with not being able to properly sort workers alphabetically, hide old/retired workers, and set payout thresholds. Either way, back to supporting BTCG after ghash.io added that massive block of hash power recently.

 I guess now we know where all the Bitfury chips have been going for the last couple months

 *sigh*

[Francisdoge]

For the most I try, I don't understand how these businesses make money.

You've got the gold buried, and the shovel in your hands. So you rent the shovel ? Wtf ?

[coin123123]

For the most I try, I don't understand how these businesses make money.

You've got the gold buried, and the shovel in your hands. So you rent the shovel ? Wtf ?

You rent shovel for amount of gold it will never find

[TechByPC]

Thought some of you would like to gloat now that Ghash.IO/Cex.IO price is down

As of 201312302325 (Eastern US)

BTC Guild: 0.00251479
Eligius: 0.00245285
EclipseMC: 0.00235689
Ghash.IO: 0.00166406(0.04497477 GHS * 0.037)

[bitpop]

Scum bags are burning in Hell, sadly they took all your money

[kickbit]

So, prices are really gone down.

And I'm not sure I'll break even this time
But there are some good news for those who didn't bought GHashes. They became really cheap.

You can check here: http://mining-profit.com/

Metric: "Simple mining ROI: -38%"
It was about -60%

With current prices GHashes are much more profitable.

[DrG]

So, prices are really gone down.

And I'm not sure I'll break even this time
But there are some good news for those who didn't bought GHashes. They became really cheap.

You can check here: http://mining-profit.com/

Metric: "Simple mining ROI: -38%"
It was about -60%

With current prices GHashes are much more profitable.

So going from losing 60% of your investment to only 38% is considered profitable 

It's less of a loss.

Sheesh, if you guys love trading so much just buy the BTC outright and trade it on BTCe - the chance for success is much higher there since at least you're not starting with a -40% handicap.

[kickbit]

So going from losing 60% of your investment to only 38% is considered profitable 

It's less of a loss.

Sheesh, if you guys love trading so much just buy the BTC outright and trade it on BTCe - the chance for success is much higher there since at least you're not starting with a -40% handicap.

Yep, you're right

But it's a way to multiply bitcoins.
Considering that you sell GHashes -38% ROI is not so bad.

[TechByPC]

Just thought I'd update this again.

As of 201401080920 (Eastern US)

    BTC Guild: 0.00361892
    Eligius: 0.00343944
    EclipseMC: 0.00305889
    Ghash.IO: 0.00299150 (0.07122612 GHS * 0.042)

Each pool had a single USB Block Erupter pointed at it starting December 14. At the time GHS was around 0.0735. I find it interesting that even with the loss in vale of GHS that it is still holding its own against EclipseMC.

[kickbit]

Just thought I'd update this again.

As of 201401080920 (Eastern US)

    BTC Guild: 0.00361892
    Eligius: 0.00343944
    EclipseMC: 0.00305889
    Ghash.IO: 0.00299150 (0.07122612 GHS * 0.042)

Each pool had a single USB Block Erupter pointed at it starting December 14. At the time GHS was around 0.0735. I find it interesting that even with the loss in vale of GHS that it is still holding its own against EclipseMC.

Ehm.. Could you explain more detailed?
I didn't get it.

[MWNinja]

We're offering hosted GH/s at roughly half the price of Cex.io in our group buy.  There are much cheaper options now for obtaining hosted hashing, what Cex.io offers is liquidity so you can quickly dump your GH/s, but is really worth so much of a premium?

[TechByPC]

Ehm.. Could you explain more detailed?
I didn't get it.

Four different miners running, each with a single USB Block Erupter, pointed at 4 different pools to compare the real-world profitability of the pools. The start of the experiment is here http://techbypc.com/2013/12/14/experiment-bitcoin-mining-part-6-beginning-experiment/

[crocko]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

What 10 GH/s ASIC miner worth $10.000 ??

[crocko]

Which mine is this?  The one offering 1GH per share at 60% of CEX.io?

the 100TH mine (now around 520TH) offers 1GH per share at about 60% the price of CEX.io, can be sold at any time (smaller orderbook though), and equipment is constantly being added.

The bitfury mine. It's over 500TH right now.

Buy shares here for 0.0395 BTC per GH: https://picostocks.com/stocks/view/19

This is the forum post of the mine: https://bitcointalk.org/index.php?topic=140366.0

Seems your Pico-wonder-mine is down... any alternative to obtain cheap GH/s ?

[Morblias]

Seems your Pico-wonder-mine is down... any alternative to obtain cheap GH/s ?

It should be back up now. Was down for the last 4 or 5 days.

PicoStocks will be down till Tuesday. During construction work at the institution where we keep the servers the optical fiber was cut. The construction company has a habit to work on Friday more intensively and of course cause more damage before weekend. Monday is a holiday in Poland and nobody will do anything about this.
The server location is not at a level that would be required for a serious operation. We will try to change this and relocate the servers in the next 2 weeks.

[Dafar]

Tagged for later

Thinking of cloud mining w/ CEX.IO

[FandangledGizmo]

Only if difficulty keeps climbing at this pace, right? That`s something I don`t quite get in general...it`s a pity that simply buying bitcoins is so much more profitable than investing in the infrastructure. I also like having a (small) btc cashflow and supporting the network, it really sucks that you loose big time if you do that instead of simply hoarding the coins.

Supporting the network? You are doing the exact opposite of supporting Bitcoin.

If you look in the mirror each morning and say -

'Everyday I am doing my best to destroy Bitcoin! Everyday I am giving resources to a mining pool that controls more than 10% of the network! One day soon I will be able to look my daughter, my mother and my wife in the eye and tell them that I am personally responsible for them being prostitutes and slaves. Yes, I personally gave money to help buy the equipment the government and central banks used to gain control of the Bitcoin network, crash the price and destroy trust in Bitcoin. I could have just bought Bitcoin or used P2Pool but instead I wanted to be the devil and destroy mankind."

As long as you look at yourself in the mirror each morning and say that, then good luck to you. 

[Macno]

Calm down. I withdrew everything from Cex and I`m sorry they have my 3 GHash now. I thought I was doing something good with cloudmining and the whole 51% thing was not even an issue then. As soon as the 51% thing came up on reddit, I withdrew everything and did not think about them keeping the hardware, sorry.

PS: I have bought BTC and quite a few, thanks. I actually GAVE AWAY more than many people here have (more than 30), just to promote the cause. And I don`t have any equipment to P2PPool-mine. I just felt it is wrong to do better just buying and holding BTC and let the others mine/support the network, that`s why I wanted to cloud-mine, even if the risk of loss sounded pretty big.

[Scriptiee]

so now that is it only 36% we can safely jump back in on the cloud mining bandwagon? 

[msc_de]

no way make profit only mining on cex

but with trading from time to time is ok 

[kickbit]

no way make profit only mining on cex

but with trading from time to time is ok 

Yep

[yslyung]

just started too, yeah agreed with trading. just mining alone will take ages !

[realitycheck]

trading (and mining when you get caught holding the bag) - great way to trade with BTC.

[greenlion]

So the reason why I left Cex, is because I don't trust them to add hashpower to the market efficiently in a way that has a minimal effect on the price. They could be as clumsy as adding 5TH/s and dumping it all onto the market at once causing the price to crash, or they could be smarter and dribble it in over time. You just don't know, but I guarantee they are not as smart or as experienced as the traders in a commodities market.

This is a very intelligent way to look at it.

The only way that Cex could actually function as a real futures market is if there weren't a monopoly commodity seller.

The fact that Cex themselves are the only entity that can put tradable GH/s on the market makes the whole thing a nightmare. It would actually be amazing if there were some standardized way developed that people could provably put their own GH/s on a market like that, a system like that would actually function like a real commodity market.

[Gator-hex]

Do you guys realize the CEX.io contact address is on Threadneedle Street?

The Bank of England is also on Threadneedle Street and it came to power as a central bank by buying all the Kings currency out of circulation (royal tally sticks).

Must watch video to educate yourself about the City of London not being London!

http://www.youtube.com/watch?v=LrObZ_HZZUc

Even the Queen of England has to get their permission before she can visit that's how powerful they are!

You don't know the power of the dark side!

http://www.youtube.com/watch?v=onhFH7jpq2c

 

[kickbit]

This is a very intelligent way to look at it.

The only way that Cex could actually function as a real futures market is if there weren't a monopoly commodity seller.

The fact that Cex themselves are the only entity that can put tradable GH/s on the market makes the whole thing a nightmare. It would actually be amazing if there were some standardized way developed that people could provably put their own GH/s on a market like that, a system like that would actually function like a real commodity market.

Yeah, it's a really nice idea. But i don't think it's easy.. We'll see what's coming up next.

[flounderella]

This is a very intelligent way to look at it.

The only way that Cex could actually function as a real futures market is if there weren't a monopoly commodity seller.

The fact that Cex themselves are the only entity that can put tradable GH/s on the market makes the whole thing a nightmare. It would actually be amazing if there were some standardized way developed that people could provably put their own GH/s on a market like that, a system like that would actually function like a real commodity market.

Yeah, it's a really nice idea. But i don't think it's easy.. We'll see what's coming up next.

Looks like price per gh is now down to 0.01644718 BTC. Still pretty unprofitable

[bitpop]

This is a very intelligent way to look at it.

The only way that Cex could actually function as a real futures market is if there weren't a monopoly commodity seller.

The fact that Cex themselves are the only entity that can put tradable GH/s on the market makes the whole thing a nightmare. It would actually be amazing if there were some standardized way developed that people could provably put their own GH/s on a market like that, a system like that would actually function like a real commodity market.

Yeah, it's a really nice idea. But i don't think it's easy.. We'll see what's coming up next.

Looks like price per gh is now down to 0.01644718 BTC. Still pretty unprofitable

There were others. There was one called gpu something. The owners always stole the money and ran.

Fuck ghashio

[greenlion]

Definitely a losing deal unless you magically make money day trading GH/s themselves.

The organization itself can dump as much hashing power as they want on the market making you a perpetual bag-holder.

They've basically invented a business model where they can be in perpetual IPO mode and constantly create new shares.

They don't even need to actually have the hardware to back all the GH/s they issue, because the market price they can dump into is always higher than that amount of GH/s will ever mine until the end of time. They could in principle operate as a Ponzi for a long time without anyone noticing it, as long as there are sufficient people willing to hook up to Ghash.io to make its total hashrate look plausible, because the immediate BTC sale of any GH/s they dump onto the market will pay off any simulated mining earning plus generate a profit.

[BenAnh]

If you're trading and not making profits, only losses then this means someone is making a profit. So it's not the system but it's you! Where do you think the money go?

[bitpop]

If you're trading and not making profits, only losses then this means someone is making a profit. So it's not the system but it's you! Where do you think the money go?

The owner and ponzi tops

[greenlion]

This is potentially even crazier and more sustainable than your run of the mill Ponzi.

The GH/s prices in BTC have always supported more than enough to pay what that amount of hashing power would generate until the end of time. I'd even go so far as to say it's stupid and unnecessary to even really have the hashing power in the first place, or at least start out with some and just start selling ficticious GH/s.

In the traditional Ponzi setup, the revenue of new investors is required to pay off older investors. If this kind of scheme decided to go Ponzi, they don't even need the revenue of new investors, because the buy-and-hold GH/s buyer is basically locking into giving the hosting company a loan with negative interest. It doesn't even matter how the buyer behaves because by putting new GH/s on the market, the revenue already takes care of all future "mining" revenue payments no matter how it changes hands, so long as it's always possible to sell new GH/s above total BTC ROI on that hashing power.

The only way a scheme like that would start falling apart is if difficulty leveled off such that the GH/s prices at any given time were actually discounted compared to projected mining revs.

[barruka]

What do you think about actual CEX price GHS/BTC aprox. 0.016 ?

[flounderella]

What do you think about actual CEX price GHS/BTC aprox. 0.016 ?

Approx $10 per GH! Assuming the GH is even REAL, its a losing deal with difficulty rising every two weeks.

For comparison, an Antminer S1 will get you $3 per GH.

[greenlion]

A price of 0.016 per gigahash breaks even within about a year if you assume that difficulty only averages about 10% per retargeting, and by the end of that year you're mining only a matter of satoshis per jump.

That's simply not going to happen. Slightly more realistic but still fantasy-world optimistic assumptions show that even if jumps only average about 20%, you're still talking maybe 0.01 total ever.

[hunter001]

no way make profit only mining on cex

but with trading from time to time is ok 

+100

[BigBoy89]

no profit at all when you invest in cex.io
even after 1 year you never get ROI

Do you guys realize the CEX.io contact address is on Threadneedle Street?

The Bank of England is also on Threadneedle Street and it came to power as a central bank by buying all the Kings currency out of circulation (royal tally sticks).

Must watch video to educate yourself about the City of London not being London!

http://www.youtube.com/watch?v=LrObZ_HZZUc

Even the Queen of England has to get their permission before she can visit that's how powerful they are!

You don't know the power of the dark side!

http://www.youtube.com/watch?v=onhFH7jpq2c

 

i even just know it form you
thanks for information

[hungpham]

the price is down and down agian

[semik]

the price is down and down agian

Down? 27.3. was price 0.0105 and now is 0.0114, I've covered my loses from past two weeks and I'm at zero balance now. A time to quit I guess But I'm still curious about reasons for growing. Maybe it's related to bitcoin price loses...

[TechByPC]

the price is down and down agian

Down? 27.3. was price 0.0105 and now is 0.0114, I've covered my loses from past two weeks and I'm at zero balance now. A time to quit I guess But I'm still curious about reasons for growing. Maybe it's related to bitcoin price loses...

Yes, it can't be anything logical. You won't return .003 BTC with 1GHS between now and the FHA contracts, so there is no reason to purchase at the current rates. It's silliness. FHA is an obvious better value at this point.

[xstr8guy]

Definitely a losing deal unless you magically make money day trading GH/s themselves.

The organization itself can dump as much hashing power as they want on the market making you a perpetual bag-holder.

They've basically invented a business model where they can be in perpetual IPO mode and constantly create new shares.

They don't even need to actually have the hardware to back all the GH/s they issue, because the market price they can dump into is always higher than that amount of GH/s will ever mine until the end of time. They could in principle operate as a Ponzi for a long time without anyone noticing it, as long as there are sufficient people willing to hook up to Ghash.io to make its total hashrate look plausible, because the immediate BTC sale of any GH/s they dump onto the market will pay off any simulated mining earning plus generate a profit.

Ridiculous.  They obviously have the hashing power.  Check blockchain.info.  They're the biggest portion of the network by far.  Not that I think CEX.io is a good way to make money.  Far from it!

[lucates]

So basically if you buy lets say 10 GH from their website you are renting their mining equipment and you are getting same amount of BTC like you would if you bought 10 GH asic and mine for yourself minus fees?? So if you manage to sell your GHS at the same price you bought you have rented those hashes for free. In real life you would not be able to sell your $10K USD asic right away for $10K USD

But in real life $10K would buy you a heck of a lot more than 10 GHS.

Now I see the problem, Currently you can buy 600 GHs from butterfly labs for $4680 and you have to pay electricity cost. Same 600 GHs will cost around $8500 through cex.io - not a great deal, but I can imagine when next batch of asic miners will be shipped and GHS/BTC will fall that for few months this could be profitable

You still have to pay electricity buying hash from cex.io. It is already priced in

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

[fullintegrity]

I have been mining and currently have just under 60 GH/s and also 11 antminers (2 GH/s) here in the house, along with a gridseed (dual miner) and have found all this VERY INTERESTING and some worthwhile to learn. I do think the article was perfectly written to help the newbie understand what they are getting into, wish i had read it prior, but i went at this very blindly after dropping about .5 btc on btce and playing for 3 months while the market crumbled, still managed to break even, so what they heck, now im making more btc than i would if i hadnt gotten into it.
thanks for sharing. 

[silvestar]

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably  because of the price rise in the past few days).

[bomberb17]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

[Anotheranonlol]

PETA is considerably more profitable than CEX

PETA - 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

[Majixagi]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

[Houseman]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

I mostly agree with this, however I'd point out that cost has been going up lately, which is counterintuitive. Right now I'm down to less than 1GHs because I expect a sell off and then I'll buy back in.

This is exactly the CEX value proposition when compared to the fixed contract cloud miners. With CEX you can buy/sell your GHS at anytime in very liquid market. You have the chance to buy - mine (for however long)- sell. Profit is possible both from mining income and GHS trading.

[Anotheranonlol]

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH =  0.0041 BTC

[bomberb17]

PETA is considerably more profitable than CEX

PETA - hashrate per share 15GH = last market price 0.069 BTC
PETA - 1 GH = 0.0046 BTC

And this 15GH is not fixed, it increases meaning in 1 month this 15GH can grow to 20GH yet you don't pay any extra

Just to prove the point above,

Todays PETA prices:

the mining operation has increased, now each share is entitled to 17.2GH instead of 15GH as earlier.

PETA - hashrate per share 17.2GH = last market price 0.0715 BTC
PETA- 1GH =  0.0041 BTC

Like I said however, there is a risk involved into all this (website shutdown/account hack etc.)
Both investments are risky, peta just looks even more risky compared to cex.
 

[zvs]

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

[zvs]

Not that I'm too keen on either price, but buying on cex.io at 0.0072 or whatever it's at now would be stupid or possibly uninformed, since MN2 on Cryptsy is the equiv of .0075 per GH right now, and it doesn't charge that 30%+ maintenance fee that cex.io does (or is it 40% now, after the difficulty increase?).

ed: I'll call it 35% after difficulty increase, since it used to be 35%, they cut the fee by 13%, but the difficulty is about to go up 13%.... so then the MN and MN2 on Cryptsy should be valued near .001.... or cex.io should be worth a shitload less.

i'd need cex.io around 2.5c (ed2: oops, I mean 0.0025) for me to be interested, the cryptsy stuff around 4c (0.004)

err, that'd be MN would be around .01, MN2 around .1.. if you based it off of what people are paying on cex, anyway... gd, fixed

[bomberb17]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

[zvs]

My logic for making profit in cex.io:
Assume you buy 1GHS today @ 0.0072BTC.
1GHS makes approx. 0.00005 BTC/day in today's difficulty (not counting maintenace fee)
So in order to stay profitable, you could either sell the 1 GHS today for >0.0072 BTC, or tomorrow for >0.00715BTC, or after 2 days for >0.0071BTC and so on.
Of course these figures will change after each difficulty adjustment, but logic stays the same.
The way I see it, the only thing that makes it a risky investment is the possibility of a website hack/shutdown etc. (think mtgox) since all the coins/ghs are online.

Ok so I'll try to take the fee into account.
From here
https://cex.io/maintenance
fee is $0.26/month for 1 GHS
which makes 0.26/660 = 0,00039 BTC/month
which makes 0.000013 BTC/day

So for the current difficulty, each GHS makes a net of about 0.000035 BTC/day.
For the upcoming diffuculty, each GHS will make roughly 0.00003 BTC/day.

and on Cryptsy, it'll make 0.000043 per day, which is why it doesn't make sense that they're at essentially the same price right now

again, not that I think either of them is worth buying, but it just shows the general stupidity out there

[hoop]

if i buy  100 GH from CEX, how and when get profit

[xstr8guy]

if i buy  100 GH from CEX, how and when get profit

Lol, you do know that 100GHs will earn you approximately $0.57 per day, right? You'd be very lucky to actually get half that after maintenance fees.

So why bother? You could probably find a 25 cents every day by looking down while going for a short walk. Plus you'll get fresh air and exercise. And it costs you nothing!

Anyways, here's the answer to your question...
∞

[Thenen]

if i buy  100 GH from CEX, how and when get profit

Actually, whatever hash that you purchase from cex will not earn you any profit. It will give you negative return.

[SuniX]

if i buy  100 GH from CEX, how and when get profit

Your profit opportunity is in the buying and selling of the asset itself. The mining rewards are a small token flow relative to the price you pay. Trade it, don't buy sit back and think profit will arrive.

[junglecat]

I use CEX.IO GH as a hedge against electricity on my own farm while the BTC is idle in my mining wallet. Then when I'm ready I dump it into more miners.

[junglecat]

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably  because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

[fsb4000]

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably  because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

your calculation is wrong.
current fee = (0.105 / 0.1654) * 100% = 63.5%

https://bitcoinwisdom.com/bitcoin/difficulty

[junglecat]

I buyed 250 GHS and realise he mines only with 16%,  84% goes for costs to cex where is logic!!!!!

U loose money 100% take calc in hand!

How did you get the 84% figure?
I don't use cex.io, but from my calculation, it seems the fee is about 30% now (the fee% went down considerably  because of the price rise in the past few days).

You are correct that the current fee is ~30%. The algorithm is here: https://cex.io/maintenance

your calculation is wrong.
current fee = (0.105 / 0.1654) * 100% = 63.5%

https://bitcoinwisdom.com/bitcoin/difficulty

Yes, I calculated it a while ago and have not looked again. I should have been more clear. So it has doubled, so has the price per GH. It still isn't 84%. Assuming the market keeps moving sideways 63.5% is still very good as an electricity hedge.